Soybeans:
We have been calling a bottom in the market about a moth ago and were looking for an decisive advance in price from the 1040/1020 level. However, price has not made the advance but dropped further instead. The pivotal support at 984 has not been broken thus far but the sideways pattern that price has developed during the past 2 weeks does not give us any confidence that the upswing is imminent now. In fact, price has been making lower lows every week during the past month which is a serious indication that more lows are ahead of us before the market will trade up again. At this stage we can even not exclude a possible bear scenario from here with a further 10% loss of value and a tradable low during next month only. The market is most likely to post lower values during the coming 1 or 2 weeks after which we will see whether we still can look for a tradable low or whether we should hold back until mid February. If and when price breaks the 1028 resistance mark we can start thinking about a bull scenario again but for now we want to sideline.
We have been calling a bottom in the market about a moth ago and were looking for an decisive advance in price from the 1040/1020 level. However, price has not made the advance but dropped further instead. The pivotal support at 984 has not been broken thus far but the sideways pattern that price has developed during the past 2 weeks does not give us any confidence that the upswing is imminent now. In fact, price has been making lower lows every week during the past month which is a serious indication that more lows are ahead of us before the market will trade up again. At this stage we can even not exclude a possible bear scenario from here with a further 10% loss of value and a tradable low during next month only. The market is most likely to post lower values during the coming 1 or 2 weeks after which we will see whether we still can look for a tradable low or whether we should hold back until mid February. If and when price breaks the 1028 resistance mark we can start thinking about a bull scenario again but for now we want to sideline.